Dealership trade-in value?
03-24-2010, 04:36 PM
#12
TECH SAVANT
Join Date: Dec 2006
Location: Saint Augustine, FL
Posts: 10,938
Depending on what you buy they can make the trade-in number whatever they think will get you to sign...
There are three types of car buyers, listed here in descending order of how much dealers like to see them coming in:
There are three types of car buyers, listed here in descending order of how much dealers like to see them coming in:
- The Monthly Payment Buyer: This one does not care about anything except the monthly payment. They can sell the car at 10% over MSRP; tack on every sort of warranty, fabric treatment, undercoating, paint protection, you name it--and then set up a 72 month loan with a payment only $50 to $100 a month more then the poor schmuck wanted to pay.
- The Trade-n Buyer: This guy only cares about how much his trade-in is worth. They can mark the car price up to 10% to 15% (or more) over MSRP, and then add the other crap listed above at 200% or more of their cost--and make the trade-in allowance look like the best deal ever offered.
- The Bottomline Buyer: They hate these guys. A buyer who has done their homework, knows what the new car is really worth, and what the trade-in is worth--and maybe worse; has cash or pre-arranged financing, wants the very best deal there is, and is prepared to walk if the deal doesn't fit.
Last edited by cliffyk; 03-24-2010 at 04:42 PM.
03-24-2010, 04:42 PM
#13
4th Gear Member
Join Date: Apr 2008
Location: Nebraska
Posts: 1,546
Car dealers are not the devil, they have a job to fulfill just like everyone else. Only reason the consumer doesn't like them is because the consumer doesn't know how to make a good deal. If you were to try and sell something on ebay. wouldn't you want to get the best price?? Just sayin
But back on topic. Trade in is always ****, selling it yourself isn't the easiest but it is the most rewarding. If you were to sell it yourself, i'd think you could get 7-8
But back on topic. Trade in is always ****, selling it yourself isn't the easiest but it is the most rewarding. If you were to sell it yourself, i'd think you could get 7-8
03-24-2010, 08:28 PM
#14
5th Gear Member
Join Date: Nov 2006
Location: So Cal
Posts: 3,569
Realistically: $4000ish. Depends on soooooo many things.....take it to a Ford dealer, add 500. Honda? Subtract 500. You live in FL so add 500. If you were in the snowbelt, subtract 500-1000. Color +/- 500. Do they have 147 similar car on the lot? Ouch. Most dealers will have no intention to do the recon on a 7 year old modded muscle car that they believe will spend a ****load of time parked in the service drive....
7 years of car sales experience talkin' here....
7 years of car sales experience talkin' here....
03-26-2010, 09:12 AM
#16
2nd Gear Member
Join Date: Sep 2007
Location: Westminster, Maryland
Posts: 357
Depending on what you buy they can make the trade-in number whatever they think will get you to sign...
There are three types of car buyers, listed here in descending order of how much dealers like to see them coming in:
There are three types of car buyers, listed here in descending order of how much dealers like to see them coming in:
- The Monthly Payment Buyer: This one does not care about anything except the monthly payment. They can sell the car at 10% over MSRP; tack on every sort of warranty, fabric treatment, undercoating, paint protection, you name it--and then set up a 72 month loan with a payment only $50 to $100 a month more then the poor schmuck wanted to pay.
- The Trade-n Buyer: This guy only cares about how much his trade-in is worth. They can mark the car price up to 10% to 15% (or more) over MSRP, and then add the other crap listed above at 200% or more of their cost--and make the trade-in allowance look like the best deal ever offered.
- The Bottomline Buyer: They hate these guys. A buyer who has done their homework, knows what the new car is really worth, and what the trade-in is worth--and maybe worse; has cash or pre-arranged financing, wants the very best deal there is, and is prepared to walk if the deal doesn't fit.
it is impossible to just mark up a car 10% over MSRP without someone noticing. don't you think you would notice if you were buying a $30,000 car for $33,000? there really aren't any "trade-in" buyers either. most people are bottom-line customers, but we don't "hate them" like you say. it just takes a little longer to explain things to them because they are the people most afraid of buying a car, so they want to make sure they're not getting screwed before they make a decision.we're not evil people like people think we are.
03-26-2010, 09:59 AM
#17
6th Gear Member
Join Date: May 2006
Location: earleville md
Posts: 10,357
Ok car dealer guy I have a serious question. I owe 10k on my car, its worth about 4500... What can I do? I have amazing credit, and want to get out of this car and into something else... What can I do?
03-26-2010, 10:03 AM
#18
2nd Gear Member
Join Date: Sep 2007
Location: Westminster, Maryland
Posts: 357
you would roll the negative equity into the loan of the new car. a newer car with rebates would be the best thing to help suck up the negative equity, along with some money down. $5,500 flipped isn't the end of the world.
03-26-2010, 10:04 AM
#19
TECH SAVANT
Join Date: Dec 2006
Location: Saint Augustine, FL
Posts: 10,938
so much misinformation there it is impossible to just mark up a car 10% over MSRP without someone noticing. don't you think you would notice if you were buying a $30,000 car for $33,000? there really aren't any "trade-in" buyers either. most people are bottom-line customers, but we don't "hate them" like you say. it just takes a little longer to explain things to them because they are the people most afraid of buying a car, so they want to make sure they're not getting screwed before they make a decision.
we're not evil people like people think we are.
it is impossible to just mark up a car 10% over MSRP without someone noticing. don't you think you would notice if you were buying a $30,000 car for $33,000? there really aren't any "trade-in" buyers either. most people are bottom-line customers, but we don't "hate them" like you say. it just takes a little longer to explain things to them because they are the people most afraid of buying a car, so they want to make sure they're not getting screwed before they make a decision.we're not evil people like people think we are.
90%+ of my car buying experience over the last 45 years have been among the most frustrating experiences I have ever had--and so similar in the flow (like bringing in the "big guns" when I say no) that they had to be formulaic standard scenarios.
I tell people all the time that "If buying everything was as much hassle as buying a car I would never buy anything, ever again."
This is an excellent book, now in it's 6th or 7th edition I believe, that explains how the conglomerate dealerships will rake you through the coals.
03-26-2010, 10:21 AM
#20
2nd Gear Member
Join Date: Sep 2007
Location: Westminster, Maryland
Posts: 357
This is an excellent book, now in it's 6th or 7th edition I believe, that explains how the conglomerate dealerships will rake you through the coals.
Service contracts can cost thousands, too. But guess what an average service contract costs the average dealer in claims? Under $100. The rest of the sales price is pure profit. Let’s see: if a seller charges you $2,000 for a service agreement, that makes the seller’s typical profit $1,900 on the sale of the service contract. Nice
Another reasons that profits on service contracts/extended warranties are high is that coverage is generally limited. For instance, if you read the average policy for a new vehicle carefully, you’ll find a version of this language: “Though we say this is a five-year contract, this policy doesn’t go into effect until your car’s regular warranty expires in three years.” This limitation means you’re in reality paying a fortune for a two-year warranty, not a five-year.
To give you an example, the seller will sell you a $4,000 car for $4,400 and bank the extra $400 as “insurance” against future repairs. Since the seller has neglected to tell you he’s raised the price, he is covered on both ends. If the car needs repairs, you have paid for them in advance; and if the car doesn’t need repairs, he has an extra $400 profit. So before you even think about a service contract, get a free warranty properly negotiated and agreed to.
the author of the book seems like the kind of person that "knows everything" and finds conspericies where none exist. if that is what the rest of the book is like, i'd hate to read it.
not ripping on you personally, but it is that kind of misinformation that makes my job seem like the devil, when we're just out to make an honest living like everyone else. i'm about the most upfront and honest person you'll ever meet, and i'm not pushy or demanding. hell, i'm posting on a message forum when i'm supposed to be calling and bugging people :lol: